Unite has welcomed that the Chancellor has listened to the union’s calls for investment in jobs and relief on energy bills, as well as asking banks to pay more. However, today’s Budget was the chance to show tangible change for working-class families struggling with the deep cost of living crisis and it has missed that chance.

Unite general secretary Sharon Graham said:

“As I have been saying repeatedly in my meetings with the Prime Minister and the Chancellor, our members wanted two things from this budget: money in their pockets now, and a plan for investment and jobs.

"Whilst there is some welcome news in this budget – including relief on energy bills and some investment in jobs – these are baby steps rather than a decisive leap forward.

"The noose around the neck of wages, in the shape of frozen tax thresholds, must be dealt with. Started by the Tories in 2022, it is dragging workers into unfair tax bands and reducing disposable income. This cannot continue.’

"This was the government’s first big chance to show real tangible change. The window to win back the working class will not stay open for long.”

Cost of living: nowhere near enough

The budget’s cost of living measures are marginal and will not reach most households. Scrapping standing charges on gas and a £100 energy payment for households in council tax bands, A to D, whilst welcome, will not touch the sides, when many forecasts show bills set to jump over £400 in January.

Unite has put two serious proposals on the table: raising tax thresholds and capping energy profits. Together they could put around £700 into the pocket of the average household.

Sharon Graham said:

“This government needs to face the scale of the problem, and right now it isn’t even close.”

The Joseph Rowntree Foundation has warned that incomes after housing costs are expected to be up to £770 a year lower in 2030 than when Labour came into office. Even on its most optimistic scenario, this is set to be the worst parliament for living standards since modern records began in 1961.

Investment and jobs: pocket change

Unite welcomed the recognition that the National Wealth Fund must take a leading role in investing in infrastructure and industry, a long-standing Unite demand. But the union said the money behind it is not nearly sufficient to match the spending of our peers.

Unite is calling for an urgent boost to public investment of 1% of GDP, around £28 billion. The Budget delivers just £4 billion a year.

Unite also welcomed the fact the Chancelor has plugged the £4.7bn gap in the defence investment plan. But it reiterated its demand that defence spending be raised to 3%, then 3.5%, as soon as possible with a proper plan for jobs.

Sharon Graham said:

“Building the National Wealth Fund is the right idea, but £4 billion a year against the £28 billion we need is little more than a rounding error. Right now, this is not a plan for jobs. It is a press release.

“We also need more concrete investment in defence for our national security and to back jobs in Britain, with contracts like Skynet 6 and a new order for Typhoons.”

“Maybe more investment is coming but it’s asking workers to wait again. Labour will not win back the working class with crumbs from the top table and a promise of jam tomorrow.”